Video game industry trade group UKIE is strongly disputing the Government's claim that the games industry in the United Kingdom is shrinking. The UK games industry shrank by nearly half in 2012 compared to 2011, according to figures released by the department for Culture, Media and Sport. UKIE disputes the findings of the report and warns that many UK games companies are not being counted as part of official industrial and economic figures.

"These figures are obviously disappointing on the face of it," said UKIE CEO Jo Twist. "A reduction from £946 million to £540 million in one year is not good. This is partially due to the cyclical nature of our industry, as 2012 saw both the start of a build-up to the new generation of consoles and a broader shift towards new, smaller companies."

"However, as the Department for Culture, Media and Sport (DCMS) note in their estimates, the £540 million GVA figure is not as robust as it could be and ‘should be treated with caution’."

Twist goes on to say that a lot of game companies are not being counted as part of the UK games industry and that it is already working with the Office for National Statistics (ONS) to remedy the situation.

"This is hugely important in showing government the importance and potential of our industry, and we will be calling on games companies to help with this work in the coming months," Twist said.